FTX may raise $1B capital to assist acquisition plans

Sahana Kiran
ftx
Source – Unsplash

Crypto exchanges have become more than pertinent in the ecosystem. Despite enduring the harsh turmoil caused by the bears, several exchanges had objectives and expansion plans. While some have been carrying out extensive layoffs, a few others were focused on further expanding their business. Sam Bankman-Fried’s [SBF] FTX has established itself as a major platform this year. The exchange appeared as a saving grace to several bankrupt firms, this notion, however, did not last too long. After recently receiving backlash from UK’s regulator, the exchange seems to up its game with its latest funding round.

As per a recent report, FTX Trading Ltd. has been in talks with investors pertaining to a funding round. With this, the firm intends to acquire $1 billion in order to add to the $400 million the firm managed to raise back in January 2022.

While details about this deal could change, reports suggested that it would retain FTX’s existing valuation of about $32 billion. The existing investors on the list include SoftBank’s Vision Fund 2, Singapore’s Temasek as well as Tiger Global Management.

Elaborating on the reason behind this move, an anonymous source reportedly told CNBC that FTX intends to employ additional capital to “fuel more deal-making.”

Will FTX bring down Binance with its acquisition spree?

As mentioned earlier acquisition plans were being implemented despite the wrath of the bears this year. Back when Voyager’s financial woes surfaced, SBF extended support by proposing to purchase Voyager with Alameda. However, Voyager shunned this proposal by labeling the offer “a low-ball bid dressed up as a white knight rescue.”

It looks like FTX still has eyes on Voyager. Earlier this week, both Binance and FTX locked horns as leading bidders of Voyager’s assets.

At the beginning of the month, FTX revealed that it would acquire a whopping 30 percent stake in Anthony Scaramucci’s SkyBridge Capital. Back in June, the firm decided to explore the shores of Canada with Bitvo.

In addition to this, there were rumors that SBF would acquire the major crypto platform Huobi to increase its footprint in the Asian market.